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Construction Work Authorization Form

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					This construction work authorization form authorizes a contractor to perform work on a
property owner's property, and authorizes the owner's insurance company to pay the
contractor for the work performed. This form contains standard terms used in this form,
however, additional terms may be added to suit the needs of the user. Use this form
when entering into an agreement to perform work on a property owner's property, or if
one is a property owner wanting to have a contractor perform work on one's property.
                        WORK AUTHORIZATION AGREEMENT

THIS WORK AUTHORIZATION AGREEMENT (the “Agreement”) made as of ___________
[Instruction: Insert Date], by and between ___________ [Instruction: Insert Name of
Construction Company], located at ___________ [Instruction: Insert Address]
(“Contractor”), ___________ [Instruction: Insert Name of Property Owner], located at
___________ [Instruction: Insert Address] (“Owner”).

WHEREAS, Owner owns and/or has a legally recognized interest in the real property located at
___________ [Instruction: Insert Address] (the “Property”);

WHEREAS, Owner insured the Property by purchasing policy number ___________
[Instruction: Insert Policy Number] (the “Policy”) from ___________ [Instruction: Insert
Insurance Company Name] (“Insurance Company”). A copy of the Policy is attached hereto as
Exhibit “A” hereof;

WHEREAS, on or around ___________ [Instruction: Insert Date], Owner filed claim
#___________ [Instruction: Insert Claim Number] (the “Claim”) with Insurance Company
regarding damage and/or loss to the Property. A copy of the Claim is attached hereto as Exhibit
“B” hereof”;

WHEREAS, pursuant to the terms of the Policy, Owner has the right to select a contractor to
perform the repairs to the property,

WHEREAS, Owner desires to engage Contractor to perform the repairs to the Property indicated
on the estimate, attached hereto as Exhibit “C”, and incorporated herein (the “Estimate”), and
pursuant to the terms and conditions contained herein, Contractor desires to accept said
engagement;

NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set
forth, the parties agree as follows:

1. Authorization.

    A. Owner hereby authorizes Contractor to perform the repair work needed as a result the
Claim for damages and/or loss which occurred at the Property, in conformity with the scope and
repair price outlined in the Estimate.

    B. Owner further authorizes Insurance Company to release payment direct to Contractor for
the services performed on the Property in conjunction with Claim, in conformity with the scope
and repair price outlined in the Estimate. Should the Insurance Company require direct payment
to the Owner, Owner shall request that Contractor’s name be added to any check or draft sent to
Owner in payment of the Claim.

   C. In addition to the liens otherwise available to Contractor under the laws of the State of
___________ [Instruction: Insert State] by virtue of the work performed hereunder, as security
for Contractor’s work, Contractor is hereby granted a lien on any settlement or recovery from
payment(s) due from any insurance company or mortgage company, including but not limited to
Insurance Company.

    D. In the event that it becomes evident that additional repairs are required to be performed
on the Property that are not included in the Estimate, Contractor shall identify the additional
work (including the scope, the compensation required, and the anticipated completion date) in
writing and obtain approval from both Owner and Insurance Company. If such approval is not
obtained, no additional work will be authorized and payments for said work will not be
furnished.

    E. Owner understands that Insurance Company may not cover all work performed
hereunder, and expressly agrees that Owner is responsible for all costs not covered by Insurance
Company.

2. Terms of Service. All terms and conditions of Contractor’s services, including anticipated
completion time, when payment is due for such services and the parties’ rights and remedies
shall be subject to the signed Estimate.

3. Miscellaneous.

    A. Insurance. Contractor carries commercial general liability insurance written by
___________ [Instruction: Insert Insurance Company Name]. Owner may call ___________
[Instruction: Insert Insurance Company Name] at ___________ [Instruction: Insert Phone
Number] to check the Contractor’s insurance coverage.      Contractor carries workers’
compensation insurance for all of Contractors employees.

    B. Contractor’s License. [Comment and Instruction: This requirement is particular to
the laws of the State of California as it pertains to contractors. If your company is licensed
in another state you will want to determine if your state requires such a requirement and if
so, use the requirement required by the statute particular to the state your company is
licensed in. Or better yet, you should review whether a similar document for another state
is available for purchase on Docstoc, because it might have other or additional particular
provisions that are specific and applicable to the laws of that state.] All contractors,
including Contractor, are required by law to be licensed and regulated by the Contractors State
License Board of the State of California (the “Board”), which has jurisdiction to investigate
complaints against contractors. Contractor represents and warrants that it is fully licensed by the
Board, and further warrants that the company’s license is, and will remain, current and in good
standing. Any questions concerning a contractor may be referred to the Registrar of the Board
whose address is: Contractors State License Board of the State of California, 1020 N Street,
Sacramento, CA 95814.

    C. Mechanics Lien Warning. [Comment and Instruction: This warning is particular to
the laws of the State of California as it pertains to contractors. If your company is licensed
in another state you will want to determine if your state requires such a warning and if so,
use the warning required by the statute particular to the state your company is licensed in.
Or better yet, you should review whether a similar document for another state is available
for purchase on Docstoc, because it might have other or additional particular provisions
that are specific and applicable to the laws of that state.] Anyone who helps improve your
property, but who is not paid, may record what is called a mechanics lien on your property. A
mechanics lien is a claim, like a mortgage or home equity loan, made against your property and
recorded with the county recorder. Even if you pay your contractor in full, unpaid
subcontractors, suppliers, and laborers who helped to improve your property may record
mechanics liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you
could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also
affect your credit. To preserve their right to record a lien, each subcontractor and material
supplier must provide you with a document called a ‘Preliminary Notice.’ This notice is not a
lien. The purpose of the notice is to let you know that the person who sends you the notice has
the right to record a lien on your property if he or she is not paid. The Preliminary Notice can be
sent up to 20 days after the subcontractor starts work or the supplier provides material. This can
be a big problem if you pay your contractor before you have received the Preliminary Notices.
You will not get Preliminary Notices from your prime contractor or from laborers who work on
your project. The law assumes that you already know they are improving your property. You
can protect yourself from liens by getting a list from your contractor of all the subcontractors and
material suppliers that work on your project. Find out from your contractor when these
subcontractors started work and when these suppliers delivered goods or materials. Then wait 20
days, paying attention to the Preliminary Notices you receive. One way to protect yourself is to
pay with a joint check. When your contractor tells you it is time to pay for the work of a
subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check
payable to both the contractor and the subcontractor or material supplier. For other ways to
prevent liens, visit CSLB’s Internet Web site at www.cslb.ca.gov or call CSLB at 800-321-
CSLB (2752). REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN
PLACED ON YOUR HOME. This can mean that you may have to pay twice, or face the forced
sale of your home to pay what you owe.

    D. Cancellation. [Comment and Instruction: This requirement is particular to the laws
of the State of California as it pertains to contractors. If your company is licensed in
another state you will want to determine if your state requires such a requirement and if
so, use the requirement required by the statute particular to the state your company is
licensed in. Or better yet, you should review whether a similar document for another state
is available for purchase on Docstoc, because it might have other or additional particular
provisions that are specific and applicable to the laws of that state.] Owner has the right to
cancel this contract within three business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor’s place of business by midnight of
the third business day after you received a signed and dated copy of the contract that includes
this notice. Include your name, your address, and the date you received the signed copy of the
contract and this notice. If you cancel, Contractor must return to Owner anything you paid
within 10 days of receiving the notice of cancellation. Owner must make available to Contractor
at the Property, in substantially as good condition as received, all goods delivered to Owner
under this contract or sale. Or, you may, if you wish, comply with the Contractor’s instructions
on how to return the goods at Contractor’s expense and risk. If Owner does make the goods
available to the Contractor and Contractor does not pick them up within 20 days of the date of
Owner’s notice of cancellation, Owner may keep them without any further obligation. If Owner
fails to make the goods available to Contractor, or if Owner agrees to return the goods to
Contractor and fails to do so, then Owner shall remain liable for performance of all obligations
under the contract.

    E. Owner may cancel this transaction without any penalty or obligation, within three
business days from the above date. To cancel this transaction, Owner shall mail or deliver a
signed and dated notice of cancellation to Contractor at the address indicated above. A form
notice of cancellation is attached hereto as Exhibit “D”.

    F. Entire Agreement. This Agreement constitutes the entire agreement between the parties
hereto with respect to the specific subject matter hereof and supersedes all prior agreements or
understandings of any kind with respect to the specific subject matter hereof.

    G. Validity. In the event that any provision or part of this Agreement shall be deemed void
or invalid by a court of competent jurisdiction, the remaining provisions or parts shall be and
remain in full force and effect.

    H. Modification. Any modification to this Agreement must be in writing and signed by the
parties or it shall have no effect and shall be void.

    I. Assignment. This Agreement is binding upon and shall inure to the benefit of the
respective successors, licensees and/or assigns of the parties hereto.

   J. Waiver. The waiver by either party of a breach or violation of any provision of this
Agreement shall not constitute a waiver of any subsequent or other breach or violation.

    K. Choice of Law. This Agreement shall be governed in accordance with the laws of the
State of _____________ [Instruction: Insert State], applicable to agreements to be wholly
performed therein.

    L. Dispute Resolution. Any dispute arising under this Agreement shall be submitted to
binding arbitration under rules then prevailing of the American Arbitration Association (the
“AAA”) and judgment upon the award rendered may be entered and enforced in any court of
competent jurisdiction. The party submitting such dispute shall request the AAA to appoint an
arbitrator who is knowledgeable in the area and familiar with the industry and who will follow
substantive rules of law. Judgment upon award made in such arbitration may be entered and
enforced in any court of competent jurisdiction. Except where clearly prevented by the area of
dispute, both parties agree to continue performing their respective obligations under this
Agreement while the dispute is being resolved. Both parties will use best efforts to resolve any
disputes prior to invoking the arbitration procedures. If either party fails to perform its obligation
as set forth in this Agreement and such failure to perform is not corrected within thirty (30) days
of written notifications of such failure from the other, the matter may be turned over to
arbitration upon ten (10) days written notice to the other party. This provision is in addition to
and can be concurrently used with any lien rights available to Contractor pursuant to applicable
law.
IN WITNESS WHEREOF the parties have duly executed this Agreement as of the date first
written above.


CONTRACTOR:


________________________________ [Instruction: sign]
By: ___________________________ [Instruction: Insert Name of Signatory]
Title: ___________________________ [Instruction: Insert Title of Signatory]


OWNER:


________________________________ [Instruction: sign]
By: ___________________________ [Instruction: Insert Name of Signatory]
Title: ___________________________ [Instruction: Insert Title of Signatory]
Exhibit “A”
The Policy
Exhibit “B”
The Claim
Exhibit “C”
The Estimate
                                         Exhibit “D”
                                    Notice of Cancellation
                       ___________ [Instruction: Insert Agreement Date]

[Comment and Instruction: This requirement is particular to the laws of the State of
California as it pertains to contractors. If your company is licensed in another state you
will want to determine if your state requires such a requirement and if so, use the
requirement required by the statute particular to the state your company is licensed in. Or
better yet, you should review whether a similar document for another state is available for
purchase on Docstoc, because it might have other or additional particular provisions that
are specific and applicable to the laws of that state.] You may cancel this transaction, without
any penalty or obligation, within three business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and
any negotiable instrument executed by you will be returned within 10 days following receipt by
the seller of your cancellation notice, and any security interest arising out of the transaction will
be canceled.

If you cancel, you must make available to the seller at your residence, in substantially as good
condition as when received, any goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the return shipment of the goods at
the seller’s expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within 20
days of the date of your notice of cancellation, you may retain or dispose of the goods without
any further obligation. If you fail to make the goods available to the seller, or if you agree to
return the goods to the seller and fail to do so, then you remain liable for performance of all
obligations under the contract.”


To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or
any other written notice, or send a telegram to:

___________ [Instruction: Insert Contractor Name]
___________ [Instruction: Insert Address 1]
___________ [Instruction: Insert Address 1]

by not later than midnight of ___________ [Instruction: Insert Date 3 days from Agreement
Date]



I HEREBY CANCEL THIS TRANSACTION
__________________________
Signature


Dated: ____________________

				
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Description: This construction work authorization form authorizes a contractor to perform work on a property owner's property, and authorizes the owner's insurance company to pay the contractor for the work performed.   This form contains standard terms used in this form, however, additional terms may be added to suit the needs of the user.  Use this form when entering into an agreement to perform work on a property owner's property, or if one is a property owner wanting to have a contractor perform work on one's property.